You want to buy a house, especially since you are tired of just paying rent, but you notice that as you go to dive into the market, the market is not really accommodating. This is what millions are experiencing whether they are trying to buy or sell a home right now. With inflated interest rates and home prices, people are unable to grab the property they want because the monthly payments will be too high. An increase in interest rates like we’ve seen can cost borrowers tens of thousands of dollars. So, if you want to buy a property what are your real options?
Buying a Home vs. Rent to Own
It comes down to understanding the rules of buying a home and what benefits each option has, especially during different times in the market. If the market and prices are down and there is plenty of inventory, directly buying may be your best option, especially if rates are low as well. However, in times like these, rent-to-own options may be far better.
Advantages Of Buying
Whenever you are considering making a major financial transaction, you need to know only know what all your options are, but what’s best for you. When buying a home you will have to take on a variety of new expenses including the mortgage. These expenses may be upfront or they may come over the first several years of owning the property. The key for every homeowner is to get the cost of the property as manageable as possible. Even saving $200 a month can save a homeowner significantly over the course of a mortgage. However, the advantages of owning a home are significant as well.
Not only are you set with that property as long as you want, or can afford it, but you have the ability to make changes based on your budget and preference. Want a pool? Want to add a media room or upgrade the bathroom? You have that option and more. As far as costs, there are many benefits available to homeowners to help keep costs down including tax breaks.
Advantages Of Rent To Own
When people are interested in buying a home and they find that the down payments needed or the interest rates are too high, their credit score is too low or some other issue that keeps them from becoming a qualified buyer, the best option for them becomes renting to own. This simple but effective strategy eliminates the need to become an ideal buyer and instead allows you to showcase what makes you a strong renter.
Instead of sellers looking for someone with plenty of money, they instead look for someone with steady income who will take great care of the propety. Sellers like the strategy of rent-to-own because they usually are able to get their asking price or more. Why? Because the buyer will be saving a lot of money not having to pay an interest rate on money borrowed. The ability to save, especially immediately, is one of the greatest advantages of RTO deals.
Additional Things To Consider
If you are on the fence about these options consider what the seller of the property you are interested in is demanding. If they request a lump sum and you have the means to do it, then that’s probably the best route to take. However, if a seller is lowering their asking price because of higher rates or the market cooling, you may have an advantage of working out a RTO deal as it would increase the sales price for the seller and you still save on the interest payments as well as additional costs.
